3. The following is information on current spot and forward term structures (assume the corporate debt pays interest annually). Calculate cumulative probability of default of B corporate Bond over the next two years. Bond Treasury B Corporate Bond Spot 1 Year 3% 7.5% Spot 2 Year 4.75% 9.15% (1) Using the term structure of default probabilities, calculate the implied default probability for B Corporate Bond during the first year. (2) Calculate the implied forward rate on one-year maturity Treasuries to be delivered in one year. (3) Calculate the implied forward rate on one-year maturity B Corporate Bond to be delivered in one year. (4) Using the term structure of default probabilities, calculate the implied default probability for B Corporate Bond during the second year. (5) Calculate the cumulative probability of repayment of B Corporate Bond over the next two years.